Pulham & Sons (Coaches) Limited - Period Ending 2020-03-31

Pulham & Sons (Coaches) Limited

Contents

Pulham & Sons (Coaches) Limited

Company Information

Registered Number: 00466434

Pulham & Sons (Coaches) Limited

Strategic Report for the Year Ended 31 March 2020

The director presents his strategic report for the year ended 31 March 2020.

Principal activity

The principal activity of the company is the hire of coaches, the provision of local bus services and the provision of coach maintenance services.

Fair review of the business

The results for the year which are set out in the profit and loss account, show a pre-tax profit of £348,591 (2019: £397,996).

The company had tangible fixed assets including freehold land and buildings, equipment, coaches and vehicles valued in the financial statements at £5,375,074 (2019: £4,437,713), trade debtors of £356,097 (2019: £217,761) and trade creditors were £130,024 (2019: £99,461).

The directors consider that the business has performed in line with expectations during the year and the financial position at the year end is satisfactory.

Given the nature of the business, the company's directors are of the opinion that key performance indicators are important. The group uses a number of indicators to monitor and improve the development, performance and position of the business. Indicators are reviewed and altered to meet changes in the internal and external environments.

Principal risks and uncertainties

The director regularly appraises the company's exposure to risk.

A key risk is ensuring compliance with appropriate regulations. The Company is required to comply with regulations imposed by the driver and vehicle standards agency (DVSA). A continued commitment to robust auditing via an external agency ensures the business maintains high standards of compliance with current legislation in all areas. Future ideas and improvements are developed through membership of CoachMarque and The Guild of British Coach Operators which provide a platform for sharing the excellent practice taking place within the company.

The Company considers working capital management, particularly cash flow, to be key in management of the Company. Liquidity risk is the risk that the company does not have sufficient liquid assets to meet its obligations as they fall due. Liquidity is maintained at a prudent level and the Company ensures there is an adequate liquidity buffer to cover contingencies. The company monitors cash flow as part of its day to day control procedures.

The Company's policy in respect of credit risk is to require appropriate credit checks on potential customers and regularly review existing customers before sales are made. Current borrowings are subject to floating rate agreements. Interest rate risk is monitored and if appropriate, fixed rate funding may be considered.

Pulham & Sons (Coaches) Limited

Strategic Report for the Year Ended 31 March 2020

Furthermore, it is difficult to evaluate all of the potential implications of the current COVID-19 outbreak on the company's trade, employees, customers, suppliers and the wider economy.

The directors believe that they have the ability to react to changes in rules and guidelines to ensure the continuation of the business in a safe and considered manner.

Approved by the director on 31 March 2021 and signed on its behalf by:

.........................................
Mrs KH Pulham
Company secretary

Pulham & Sons (Coaches) Limited

Director's Report for the Year Ended 31 March 2020

The director presents his report and the financial statements for the year ended 31 March 2020.

Director of the company

The director who held office during the year was as follows:

AD Pulham

Financial instruments

Financial assets comprise cash at bank and in hand, trade debtors and other debtors; these are initially recorded at cost on the date they originate and are subsequently recorded at cost less any impairment.

The company considers evidence of impairment for all individual trade and other debtors and any subsequent impairment is recognised in profit or loss.

Future developments

The business maintains a commitment to reinvestment particularly in respect of coaches and the development of its team of people. In this way the directors are confident that continued profitable growth can be achieved in future years.

The business continues to take an active role in the local community by supporting other local businesses and charities and aims to retain staff by fostering a welcoming, supportive, caring and professional environment for all personnel.

Going concern

In accordance with Financial Reporting Council's 'Going Concern and Liquidity Risk; Guidance for Directors of UK Companies 2006', the directors of all companies are now required to provide disclosures regarding the adoption of going concern basis of accounting.

The company is currently trading profitability and has taken advantage of government support schemes, including use of furlough and CBIL's, and is closely managing it's cash flow. The directors believe that the company has sufficient resources to continue in operational existence for the forseeable future and have continued to adopt the going concern basis in preparing the financial statements.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. For example, it is difficult to evaluate all of the potential implications of the current COVID-19 outbreak on the company's trade, employees, customers, suppliers and the wider economy.

Disclosure of information to the auditors

Reappointment of auditors

Hazlewoods LLP, having been appointed in the year, have expressed their willingness to continue in office.

Pulham & Sons (Coaches) Limited

Director's Report for the Year Ended 31 March 2020

Approved by the director on 31 March 2021 and signed on its behalf by:

.........................................
Mrs KH Pulham
Company secretary

Pulham & Sons (Coaches) Limited

Statement of Director's Responsibilities

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Pulham & Sons (Coaches) Limited

Independent Auditor's Report to the Members of Pulham & Sons (Coaches) Limited

Opinion

We have audited the financial statements of Pulham & Sons (Coaches) Limited (the 'company') for the year ended 31 March 2020, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Pulham & Sons (Coaches) Limited

Independent Auditor's Report to the Members of Pulham & Sons (Coaches) Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 6], the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Pulham & Sons (Coaches) Limited

Independent Auditor's Report to the Members of Pulham & Sons (Coaches) Limited

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of the report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

31 March 2021

Pulham & Sons (Coaches) Limited

Profit and Loss Account for the Year Ended 31 March 2020

The above results were derived from continuing operations.

The company has no other comprehensive income in the current or preceding year.

Pulham & Sons (Coaches) Limited

(Registration number: 00466434)
Balance Sheet as at 31 March 2020

Approved and authorised by the director on 31 March 2021
 

.........................................

AD Pulham

Director

Pulham & Sons (Coaches) Limited

Statement of Cash Flows for the Year Ended 31 March 2020

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Bourton Business Park
Bourton-on-the-Water
Gloucestershire
GL54 2HQ

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

Basis of preparation

Going concern

The financial statements have been prepared on a going concern basis. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going concern. For example, it is difficult to evaluate all of the potential implications of the current COVID-19 outbreak on the company’s trade, employees, customers, suppliers and the wider economy.

In assessing whether the going concern basis is appropriate, the directors take into account all available information about the future, which is at least, but not limited to, 12 months from the date of signing these financial statements. The directors have considered the impacts of Covid-19 on the financial statements and the future of the business which has been set out in the Directors Report on page 3.

The financial statements have been prepared on the going concern basis, which the directors believe to be appropriate. The directors continue to monitor the business’ requirements and have made plans which underpin the going concern basis for the business.

As the date of approval of these financial statements the directors believe that the business will continue to operate successfully for the foreseeable future and be able to meet its liabilities as and when they fall due.

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Judgements

Key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Revenue recognition

Tax

Tangible assets

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Depreciation

Cash and cash equivalents

Trade debtors

Stocks

Trade creditors

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Borrowings

Leases

Share capital

Dividends

Defined contribution pension obligation

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet, The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non-financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

 

Turn over is wholly a ttributable to the company's principal activity and arises entirely in the United Kingdom.
 

Arrived at after charging/(crediting)

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

The aggregate payroll costs (including director's remuneration) were as follows:

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

The director's remuneration for the year was as follows:

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Tax charged/(credited) in the income statement

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2019 - the same as the standard rate of corporation tax in the UK) of 19% (2019 - 19%).

The differences are reconciled below:

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Assets held under finance leases and hire purchase contracts

The net book value of tangible fixed assets includes assets held under fianance leases or hire purchase contracts of £3,357,395 (2019 - £2,342,795) and depreciation charges of £839,348 (2019 - £585,700).

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Included in the loans and borrowings are the following amounts due after more than five years:

The secured bank loan is being repaid on a monthly basis from May 2013 and will expire in 2033. Interest is charged on the bank loan at the rate of 2.56% above the base rate. There is a first legal charge over the company's premises and an unlimited debenture incorporating a fixed and floating charge by way of security on the loan.

Finance lease obligations are secured against the assets to which they relate. Other loans are unsecured, do not accrue interest and are repayable on demand.

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Allotted, called up and fully paid shares

Operating leases

The total of future minimum lease payments is as follows:

Final dividends paid

The dividends are payable to the company director.

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £55,613 (2019 - £35,697). Contributions totalling £4,029 (2019 - £4,053) were payable to the fund at the reporting date and are included in creditors.

Pulham & Sons (Coaches) Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Summary of transactions with other related parties

Included in other debtors is a balance of £52,000 (2019 - £52,000) due from Scarlet Enterprises Limited, a company in which AD Pulham is a director.

Included in creditors is a balance of £600,000 (2019 - £600,000) due to JE Adams and Mrs H Adams

The ultimate controlling party is AD Pulham.